The cost of homeowner's and car insurance can be daunting, but there are ways to save on these important expenses. Here are some tips on reducing the cost of these policies.
Two Policies, One Company
Look for an insurance company that will cover both homeowner's and car insurance. Many companies will give you a discount if you sign up for multiple policies with them. Make sure you ask about such a multi-policy discount; many companies may not mention it unless you ask.
While you're asking about the multi-policy discount, also ask about any other discounts. For example, your homeowner's insurance company may offer a discount for non-smokers and for those homes with security systems installed. Dead bolt locks on every door might provide a discount as well.
Car insurance companies may give you a discount if you take a driver's safety course or have low mileage. A car that doesn't get driven much may be cheaper to insure.
Raise Your Deductible
This is one of the most obvious ways to save on both car and homeowner's insurance, but it's also the one that people seem most reluctant to implement. Remember, having to use your insurance is a rare thing; but having to pay up monthly for a policy is a regular thing that doesn't go away. Also, if your deductible is raised and your payments go down, you can use the extra money to set aside a savings account to cover the high deductible in the event of an emergency.
It's easy to go on assumptions when you begin looking into insurance. After all, aren't SUVs always more expensive to insure than, say, sedans? Not necessarily - make sure you check the actual costs and prices of policies rather than basing your decision on assumption. Homeowner's insurance is similar - don't assume that the house closest to the creek is more expensive to insure than the one on the hillside.
Find Out What Your Policy Covers
Know the details of your homeowner's and car insurance policies. What exactly is covered? How much of that is necessary? The company will probably tell you it's all necessary and try to sell you more; but do your research and find out just what all the fine print means in your policy. You may find that you don't really need some of the additions on your policies after all.